Countervailing power and consumer prices

Dobson, Paul W. and Waterson, Michael (1997) Countervailing power and consumer prices. The Economic Journal, 107 (441). pp. 418-430. ISSN 1468-0297

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Abstract

This paper considers the importance of countervailing power, manifested as the effects of increased retail concentration on consumer prices and welfare within a market setting where imperfectly competitive retailers negotiate intermediate prices with a monopoly supplier. Only when retailer services are regarded as very close substitutes do final prices fall following a reduction in the number of retailers. Even in these circumstances, the social benefits of countervailing power may not be realised as the supplier may seek to protect its profits by using a refusal to supply restraint to engage in exclusive trading.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > Norwich Business School
UEA Research Groups:	Faculty of Social Sciences > Research Groups > Responsible Business Regulation Group Faculty of Social Sciences > Research Centres > Centre for Competition Policy
Depositing User:	Nicola Secker
Date Deposited:	29 Mar 2011 15:02
Last Modified:	10 Jan 2024 01:26
URI:	https://ueaeprints.uea.ac.uk/id/eprint/26105
DOI:	10.1111/j.0013-0133.1997.167.x

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